4 Hour Strategy (MACD)

Hi turk!

Wher is your profit target?
21 ema is about 22 pips form your entry. I didnt take this signal due to this fact.
Is risk reward ratio ok for you?

Thanks

woju

Took the deal today on USD/CHF at 8 (GMT+2) - long
Reasons: MACD gave RB signal, with the trend, there was a hammer at the bottom.
Entry 1.2180
SL +19 1.2161
TP +21 1.2000 price level
R:R=OK
Notes: couldn't watch it live, so had to put SL and TP, took my 20 pips could be still in a trade.

xwisdom:

When you have a MACD signal on the 4hr chart you shouldn't use the the 1hr chart for entries on the 4hr. The 1hr charts are for trend continuation signals. When price action on the 4hr approaches the 21EMA then you look at the 1hr for a re-entry signal in the direction of the trend on the 4hr.

No trades today before Bernanke talks. I don't think this is a rate increase/decrease/neutral speech. It may just be a 'this is the situation and this is what needs to be done' talk. Someone correct me if I'm wrong on that one, I usually am. Either way, that can be enough to ruin your day if you're on the wrong side of things.

Still need to pick up a microphone to Skype.

Still haven't cleaned my room.

See how this pair is behaving. Surely +++++pips to be made. Approx 150 pips between the trend lines.

I have been thinking about possible ways to contribute to this forum.

Here is today's interim report :

Todays signals by 4 hr method

CUrrency Pairs/Time/MACD signal/Trendwise/Opening price /initial target /Result
1. EUR/USD 0 GMT RT(counter Trend) 1.3428 1.3414 (8ema)
2. AUD/USD 0 GMT RT(counter Trend) 0.8252 0.8231 (8ema)
3. EUR/JPY 4 GMT RT(counter Trend) shouldn't be involved.
4. USD/CHF 4 GMT RB(Trend) 1.2177 1.2195 (21ema)
5. USD/CAD 4 GMT RB(counter Trend) 1.1471 1.1479(8ema)
6. EUR/CHF 8 GMT RB(trend) 1.6358 +30pips ?


You can check the current price for each pair for further progress of these trades.

*The opening price is of the following candle.
*TC confirmed on 1hr for EUR/JPY.

We will see a possible R/T on GBP/USD at 16 GMT.

Im trying to set my trading platform to 5 13 1 on macd and the 5 13 works fine on the macd as ema but the 1 is a sma and not a ema per the direction. I look for ways to change it to 1 ema but I cant find it. Will this be a problem with 1 sma ? the platform is mig. little help plz

there is a great custom 5,13,1 macd indicator on this forum that will do it for you. It has red and green lines to show which way the move is. Sorry I don't remember the exact post. It is worth finding.

Be not afraid of going slowly: Be afraid only of standing still Chinese Proverb

Here it is osiriros

I don't have much time to contribute much anymore (have to work and actually trade sometime ), but after listening to Phllips mp3 stating that after doing this strategy for at least the past couple months we should be getting market feel, I starting thinking more about what I've seen and how I evaluate it. This may be long....

I'm an engineer and that's the way I tend to think. I'm now going to equate this system and overall trading to "controls" which is a class I once HAD to take. It deals with crazy math types called laplace transforms and controls more than most of you probably think in daily life.

One example that I feel fits is your average cruise control. The way it works is if you're going 45, your cruise it set to 60, and you hit resume.... the programing uses that crazy math to determine how fast you accelerate, then when it gets to 60, (depending on the acceleration/speed to get there), it knows it's at 60 and slows down. This creates an overshoot above 60, unless you want your cruise to accelerate and then slam on the brakes as soon as it hits 60. So, it overshoots, and then oscillates, which will create an undershoot, then small overshoot, and then will flatten out at 60.

Now there is major, major math going on to determine variables (hills, acceleration, weight, ect... just like forex news and psych) that then determine the magnitude of the oscillation (or overshoot and undershoot). The result is that it finds it's intended goal. We would all love if it just moved nicely to the target and flattened out without oscillation... but rarely happens.

Attached are charts of actual cruise control programming. 1 very slow rise that gets you from 45 to 60 eventually but nice and smoothly, no jerks involved (doesn't happen much right?). The next is a little faster rise with some oscillation to find the target, and the next is a very quick rise with even more oscillation to find the target.

I relate this to trading either in an overall sense, or more towards this:
The 21 is our target at almost all times (unless it goes to the 89). The 21 is the magnet that the price is just "drawn" to. So, depending on the speed in which the move to the 21 happens, is what will tells us the oscillation, and gives us some clue to what will happen next, or what the target actually is. (another reason to trade longer time frames, to lessen the oscillation seen)

Even further, as I posted late last week, I am only taking macd signals coming off trend lines, and it's going very well. To relate that, to my analogy, more often than not, the tl's are above and below the 21, which means when I get a signal coming off the t/l, I'm catching it at what is potentially the highest (or lowest) oscillation. By the time it oscillates a bit to find the target, I'm out with pips in hand.

Sorry for the long post, but thought I would share my thoughts along this crazy forex journey of mine in hopes of helping or learning more from just putting this down on paper.

Anybody looking at GBPUSD setting RT on H4 and LH on H1.
Seems like resistance at this level, failed to go thru earlier.

Those who want MACD indicator: go here
http://www.forexfactory.com/showthread.php?t=20349

Thanks Dire, that makes sense, and the trade off of trendlines has helped me too since i read your post last week

Dire:

Thanks for the input. Please continue to stop by every once in a while regardless and best of luck in your trading journey.

GBPUSD trade is going nicely,
28 pips taken, part position, the rest set at be

If you are using a moving average of 1 there is no such thing as simple or exponential or any other variety.

If a value is for example 52, the 1 moving average will be 52.

EURO$ news tomorrow:

Interest rate statement at 7:30 and

8:30am EUR ECB President Trichet Speaks

After this week 2 loses, I put together a custom indicator that calculates the slope and angle of MACD based on 5 bar period on 4H. It has helped me confirm the MACD pattern and when to pull the trigger instead of relying on my eye to descern the pattern. Sometimes I take too fast to judge the pattern and make the mistake ex: an RT from my naked eye when it is really a VT.

My MACD trigger slope is at 60 degrees.
Long = When pattern exist and MACD angle crosses -60 degrees going up
Short= When pattern exist and MACD angle crosses +60 degrees going down

On the bottom of the screen are my slope triggers red=+60 degrees, white=0, blue=-60 degress

Each blue vertical line 1234 represents MACD entry trade.

Euro/Usd shorts probably just got creamed.
I closed my position at breakeven thankfully :--)

Hi Ramrocket, your indicator looks nice! Good job! I was curious what else you use to decide when enter trades? Ex: why didn't you go Short on March 28th or Long on April 8th?

What servers are you all using for your trading. My Metatrader account changed server tonight and now my candles open 2 hours differently to before?
Are you basing your candles on GMT 0.00,04.00,08.00, etc or are you using whatever your server suggests?